Affordability comment on latest inflation figures:

“Despite a surprise fall in the inflation rate, at 2.6% it is still stubbornly above the target rate of 2%. Coupled with stagnating wages, high inflation rates for a sustained period of time means Brits' living standards continue to be squeezed. In this environment, ensuring customers’ affordability has never been more important to protect them from overstretching themselves financially.

“Encouragingly, three quarters of risk leaders we spoke to have a roadmap in place to address shortcomings in their affordability assessments. But more should be done to modernise practices now if we are to adequately help protect consumers, and ultimately avoid another financial crisis.”